Real estate investment property
Good reasons to invest in property
Investing in property is a good way of giving yourself additional security for your retirement and protecting yourself in an uncertain economic environment.
Investment properties retain their value and their market tends to fluctuate less significantly than other types of investment. Whether you are a private or an institutional investor, this option should be viewed as essential. Especially during periods of uncertainty, it is not advisable to see property as an alternative to the stock market or investing in precious metals.
An investment property represents the ideal combination of retirement and estate planning. Find out more here and benefit from our investment expertise.
Advantages of investing in property
- Lower price
The purchase price per square metre is often lower than for owner-occupied properties.
- Risk can be minimised
In addition, larger properties with multiple tenants reduce the risk of unpaid rent. The risk of several tenants defaulting at the same time is low.
- Easy for new investors
Joining forces with other private buyers can make it easier to start investing in larger properties like these, which were previously only affordable for institutional investors.
What are the options for investing in property?
A smaller nest egg is needed to buy an owner-occupied apartment than a house. However, the owner only acquires part of the block and has to liaise with the other owners when decisions need to be made. What is more, monthly payments must be made into a sinking fund for maintenance and it takes time to find solvent tenants.
If you invest in a detached or semi-detached house, you will be the sole owner. As the financial commitment is higher than for owner-occupied apartments and a good location is particularly important, you need to have a larger budget.
Commercial properties such as offices, shopping centres or multi-storey car parks are a long-term investment, particularly in urban areas. A carefully considered, transparent concept is recommended to minimise the significant business risk associated with commercial properties.
The demographic change taking place throughout Europe is also making itself felt in Switzerland – and among investment properties. Most people have never considered this form of investment, but care properties have many advantages. They include apartments in sheltered housing developments, retirement or nursing homes, etc. The care or support provided on site enables residents to remain largely independent but receive immediate assistance if they need it.
Property investment funds
Funds are an indirect means of investing in property. They allow even relatively small amounts to be invested profitably. Investors share in the fund’s performance and benefit from the portfolio of properties without having to buy them. However, they have to rely on the fund managers’ expertise.
With crowdfunding, the latest digital means of investing in property, a large number of people each put a small amount towards purchasing a property. Via crowdfunding platforms, individuals with a limited budget can join forces with many other investors to acquire a stake in properties which they would not otherwise be able to afford. Another advantage is that risk is spread across a large group and attractive rates of interest are paid on the capital provided.
Making the right choice
One thing is for sure: the choice of property should not be based on emotional factors (e.g. because it is close to where you live), but on rational considerations. You need to find the best possible return, which depends on the purchase price, property type, condition of the rental property and any work that needs doing to enhance its value.